Louvem fails to have courts stop Aur drilling

Societe Miniere Louvem (TSE) and parent company St. Genevieve Resources (TSE) have failed to have drilling stopped at the Louvicourt Twp. massive sulphide discovery near Val d’Or, Que.

But St. Genevieve Chairman Pierre Gauthier says he has accomplished what he set out to do by asking a Quebec Superior Court for a provisional injunction t o halt surface exploration at the project.

“We were using it (the request for an injunction) as a means to get the information we wanted from Aur Resources (TSE),” said Gauthier.

He says he has to have received assurances from Aur that his company will be kept up to date on exploration at Louvicourt at least until a legal dispute involving both companies is heard in court, Sept. 12.

The dispute arose last year, after Aur accused Louvem of defaulting on a $40,000 payment during an earlier phase of exploration. According to Aur, the alleged default gives it the right to dilute Louvem’s interest in the project to 25% from 50% and continue as operator when underground exploration begins.

In a countersuit, Louvem denies that the default ever occurred and it is attempting to have the original joint venture agreement deleted.

“We didn’t really want to stop work at the property,” said Gauthier who claims that Aur is bound by contract to provide his company with monthly reports on the surface program.

But Aur Secretary Peter McCarter claims that Louvem has been getting “absolutely everything” that it is entitled to as a partner in the project where potential reserves now stand at 36 million tons grading 3.11% copper and 1.34% zinc.

“We are still a little perplexed by it all,” said McCarter in reference to the injunction attempt.

Aur is using Navi-drills to get down below the 3,000-ft. level at Louvicourt Twp. But the next batch of results won’t be available until mid-February, McCarter said.